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The link you posted just keeps timing out for me, so I can't read the details. Based on just the premise you gave, it seems to me that a book-as-application would be bad. A support nightmare for the publishers, too. You'd have to install the application, presumably on a laptop or smartphone, and not all laptops or smartphones are the same, so they would need tons of different versions that would run on the different places. Where is the advantage? It's hard enough to get just the text formatted by them into different formats, much less with a built-in hunk of software.
Not to mention that it wouldn't work on e-book reader devices.
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